What is the New York definition of ';Control';, in relation to subsidiaries of companies?

I.E., is it ';ownership'; or ';power to direct the management and policies of';.





Source would be helpful.





Also, is it treated differently for foreign corporations?What is the New York definition of ';Control';, in relation to subsidiaries of companies?
AUTHORITATIVE PRONOUNCEMENTS


鈥?FAS 94 鈥?FAS 140 鈥?FAS 144 鈥?ARB 43, Chapter 12


鈥?ARB 51 鈥?APB 18 鈥?FIN 46(R)





鈥楽ubsidiary鈥?refers to a corporation that is controlled, directly or indirectly, by another corporation. The usual condition for control is ownership of a majority (over 50%) of the outstanding voting stock. However, the power to control may


also exist with a lesser percentage of ownership, for example, by contract, lease, and agreement with other stockholders or by court decree.





(A) SEC registrants


In its rules on consolidation policy, the SEC emphasises the need to consider substance over form to determine the appropriate consolidation policy. The SEC notes that there may be situations where consolidation of an entity, notwithstanding the lack of technical majority ownership, is necessary to present fairly the financial position and results of operations of the registrant, because of the existence of a


parent/subsidiary relationship by means other than record, i.e. greater than 50%, ownership of voting stock.


The definition of a subsidiary contained in Regulation S-X is based on control and risk:


鈥?Subsidiary 鈥?a subsidiary of a specified person is an affiliate (individual, corporation, partnership, trust or unincorporated organisation) controlled by such person directly or indirectly through one or more intermediaries.


鈥?Control 鈥?means the possession, direct or indirect, of the power to direct or cause the direction of management and policies of a person, whether through the ownership of voting shares, by contract or otherwise.


鈥?Voting shares 鈥?means the sum of all rights to vote for the election of directors.





What this means is that if you can prove control as defined above, you do have a subsid. and you have to consolidate its financial statements, even tho' your equity ownership does not exceed 50%. Please read the rest of the write-up at the link and refer to the authoritative pronouncements.





IFRS have similar rules. Pls refer to IAS 27.